Board of Weld County Commissioners propose new review process for oil-gas industry

The Board of Weld County Commissioners took the code change to the planning commission Tuesday afternoon. The planning officials, who serve as an advisory board to the county commissioners, unanimously recommended the change. Now the Board of Weld County Commissioners will vote on it.

In an unlikely move, the Board of Weld County Commissioners is working to put more regulations on the oil and gas industry.

The business-friendly group is pushing for a change in the county's code that would start requiring energy companies to go through the use-by-special-review process before building a new drilling site. During the review process, companies have to work with county planning staff and undergo two public hearings before they can get their permits.

However, the move isn't designed to limit the industry; it's designed to limit the state government.

Commissioners say the Colorado Oil and Gas Conservation Commission is overstepping its bounds with pending regulations, and that their own regulations would protect personal property rights better than the COGCC's would.

They presented a code change to the Weld County Planning Commission on Tuesday afternoon. Planning officials unanimously gave preliminary approval.

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"They are attempting to usurp our authority as elected officials," said Board of Weld County Commissioners chairwoman Barbara Kirkmeyer.

One of the board's biggest responsibilities is land use policy. Officials have to balance commercial and industrial growth with residents' quality of life, enabling what Kirkmeyer calls "coordinated and harmonious development."

The board's land-use jurisdiction covers unincorporated Weld, areas that fall outside of city or town limits.

More than 80 percent of Colorado's oil production came out of Weld last year, Kirkmeyer said. Much of that occurred in those unincorporated areas.

Part of that is because there are areas in Colorado that have no oil production. Allowing those who don't work with the oil and gas industry to have a say in how to regulate it — as the COGCC process essentially does — makes no sense, commissioner Sean Conway said.

"It would be like the ski industry listening to Weld County on how to operate … in Vail," he said.

Inexperience isn't the only issue some commissioners expressed. Some of these rules are rooted more in politics than they are in effective policy, Conway said. He pointed a finger at Boulder County, which he said hasn't approved a new well site in three years. He said their input will unnecessarily limit the industry statewide, including here in Weld.

"I'll be damned if I'm going to let a Boulder County official determine land-use policy in Weld County," he said.

The new rules further erode the longtime practice of requiring a surface use agreement, she said.

The issue here: large setbacks can reduce the area in which a mineral owner or energy producer could locate a drilling facility. Setbacks are how far the facility has to be from homes or other public areas, such as hospitals.

The COGCC is looking at making its own setback requirements, but it's also looking at letting adjacent governments — which means nearby city councils or town boards — impose setbacks too.

These limitations could leave too little room for rigs, forcing them to go into inopportune areas, such as the middle of a corn field.

"It may impact agriculture," commissioner Julie Cozad said.

During the use-by-special-review process, the surface landowners have to submit the application, and mineral owners would be required to work with them on it. Surface owners would also have the opportunity to appeal to commissioners during the hearing.

Many commissioners argued the board is better equipped to protect its own residents than state government.

There would be about 300 new review applications a year if the code change goes through, Kirkmeyer said. The commissioners are willing to sink money into the increased hearings by hiring new planning staff members to handle the burden. Because each application will get two hearings, both the county planning commission and the county commissioners will have more on their schedules, too.

This isn't necessarily a cure-all, said County Attorney Bruce Barker.

"It does not take COGCC completely out of the picture," he said.

COGCC Director Matt Lepore voiced concern about the inefficiency such regulation can cause and its ultimate efficacy.

"For every new well, that's going to be a lot of use-by-special-review hearings every month," he said. "It adds another layer of regulation. …

"In no way does that circumvent COGCC's permitting process."

What’s next?

The Board of Weld County Commissioners took the code change to the planning commission Tuesday afternoon. The planning officials, who serve as an advisory board to the county commissioners, unanimously recommended the change. Now the Board of Weld County Commissioners will vote on it.